For most taxpayers, the idea of getting audited by the IRS is a troubling thought. While a tax audit is simply a review to ensure that individuals are reporting correctly and adhering to tax laws, it's an ordeal most people wish to avoid. The odds of the IRS selecting...
Identifying Effective Tax Help Solutions
Year: 2020
4 commonly misunderstood tax deductions for the self-employed
There’s nothing like being your own boss. However, the downside of only having to answer to yourself is that you are responsible for your own payroll taxes. To help lighten your tax burden, the IRS allows for several tax deductions. It’s important that you understand...
IRS resumes audits, with renewed focus on high-income taxpayers
The Internal Revenue Service (IRS) recently announced it will renew audit efforts that were postponed a few months ago in response to the current coronavirus pandemic. The federal agency, like most organizations and businesses throughout the country, greatly reduced...
Steps to take if you receive notice of a delinquent tax return
A letter from the IRS can be anxiety-provoking. Feelings of unease can turn to terror if the IRS is informing you that you have a delinquent tax return. However, it’s important to remind yourself that this is not the end of the world. Here are some steps you can take...
An offer in compromise could settle your tax debt for less
If you are unable to pay what you owe in taxes, or if paying would create a financial hardship for you, the IRS may consider what is called an “offer in compromise” to settle your tax debt. Essentially, the IRS is sometimes willing to settle your debt for the amount...
What are the different ways the IRS can audit your taxes?
As an adult responsible for filing and paying your own taxes, the word audit might send a shiver down your spine. After all, an audit usually only occurs if the Internal Revenue Service (IRS) has reason to believe that there are omissions or errors in your tax return....
It isn’t too late to file or pay your 2019 income taxes
Whether you run your own small business, pay your quarterly taxes as a self-employed independent contractor or just have had too much on your plate in recent weeks to think about filing your annual tax return, you probably know that the longer you wait to file your...
What is innocent spouse relief on income taxes?
When people divorce, there are often some surprises that come up in the process. Unfortunately, some people might realize that their spouse didn't handle something related to income tax returns properly. This can lead to a tax liability for both parties, including the...
Consider the pros and cons of U.S. Tax Court
People who have to deal with issues with the Internal Revenue Service know that the processes you may have to go through are challenging. Being audited can feel stressful but working with someone familiar with tax law might be beneficial.Many people don't realize that...
Are you liable for your spouse’s tax mistakes and fraud?
Taxes can be very stressful, and many people will do just about anything to limit how much they have to pay. There is a fine line between tax avoidance, a legal effort to minimize your tax obligations, and tax evasion, the illegal avoidance of taxes you have a...